Indicators of willing participation

Compliance with tax and superannuation obligations involves correctly registering in the system, lodging tax information on time, reporting complete and accurate information and paying tax obligations on time.

Privately owned and wealthy groups are diverse in terms of size, operating structure and industry and are registered for a range of tax and superannuation obligations. Not only do they as owners pay tax as individuals and in their businesses, they are often employers, withholding taxes and paying superannuation contributions on behalf of their employees. We are confident that the majority of businesses that should be registered in the system are registered.

The majority of privately owned and wealthy groups are represented by registered tax agents who help these groups meet their lodgment and reporting obligations. There has been a steady and sustained increase in on-time lodgment of income tax returns by all types of business entities over recent years.

We know that there are many factors driving willing participation, including the community’s perceptions of the integrity of the tax and superannuation systems and complexities around tax law. We aim to make it as easy as we can for these groups to follow the tax system. We provide engagement and services for private groups that are focused on resolving issues through more effective and earlier engagement. We know the majority want to do the right thing and we seek to strike a balance between encouragement and enforcement.